CBI Books Yuvaraj Power, ₹59 Crore Routed to Gachibowli Account
HYDERABAD: The Central Bureau of Investigation (CBI) has registered a case against Rajahmundry-based Yuvaraj Power Projects, its directors, auditors, contractors and unidentified public servants.
The case relates to an alleged ₹95.2-crore fraud involving a Pooled Municipal Debt Obligation (PMDO) facility, as re ported by TOI.
The CBI alleged that the accused diverted funds meant for solid waste composting facilities and a 13 MW power plant. The agency said the accused routed the money through layered and circular transactions.
The CBI also invoked the Prevention of Corruption Act against unidentified public servants. They allegedly abused their official positions while sanctioning the credit facility.
The case followed a complaint by Dr Vivek Rajawat, general manager and head of the NPA Management Department at India Infrastructure Finance Company Limited (IIFCL).
₹88.2 crore disbursed under PMDO facility
According to the FIR, the accused allegedly conspired to induce financial institutions to sanction the ₹95.2-crore facility.
Lenders disbursed ₹88.2 crore under the facility. IIFCL sanctioned ₹6.4 crore as its share and disbursed ₹5.1 crore.
As of May 31, IIFCL claimed ₹20.6 crore, including principal and interest.
₹59.5 crore transferred to Hyderabad contractor
A forensic analysis cited in the case found that the accused transferred ₹59.5 crore to a current account with Axis Bank in Gachibowli.
The account belonged to EPC contractor Pratham Envirotech Engineers.
The CBI alleged that the accused later routed about ₹12.8 crore from the account to several companies. Directors of Yuvaraj Power Projects had interests in these companies.
The agency said the accused did not use the funds for the sanctioned projects.
Instead, they allegedly siphoned off the money through circular transactions and layering.
The CBI also alleged that the accused submitted false and forged utilisation certificates. They allegedly used the documents to conceal the diversion.
FIR names 16 accused
The FIR names 16 accused, including Yuvaraj Power Projects.
The list includes its chairperson and managing director, Venkata Satyaramu Maddipoti alias MVS Ramu. It also names additional director Teegela Venkata Satyanarayana.
The other directors named are Lanka Visweswara Rao, Satyanarayan Chaudhary Maddipoti alias MS Chowdary, Vijaya Kumar and Seshuvardhan Vundavalli.
Sponsors M Varalakshmi and M Sujatha also figure in the FIR.
The case invokes Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
It also invokes provisions of the Indian Penal Code relating to criminal conspiracy, criminal breach of trust, cheating and forgery.
The allegations in the FIR are subject to investigation. They have not been judicially established.
